Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Thailand. Loosen up! Time to change strict booze laws
Looking at the shelves behind him which are packed with a wide selection of liquors from so many places and countries, I search for any Thai brand that might be hidden at the back. But I fail to find one. After mentioning a few names of Thai drinks the world may know, I keep wondering why the names of Thai drinks are so little known in the world.
Later, I go to Ayutthaya and pay a visit to the Japanese Village. Actually, it is no longer a village. It is a museum situated on the site where once a Japanese village was located. After learning about the Japanese in Ayutthaya, I am surprised by the fact that once Ayutthaya's white spirit was a very famous export to Japan. Even now, a number of high quality jars from Ayutthaya, which are used as liquor containers, are found in Japan.
The fall of the Ayutthaya Kingdom in 1767 led to a shortage of liquor. This drove Japan to develop its own rice wine for meeting the high demand. Finally, the famous Awamori rice wine was created under great influence from Ayutthaya's liquor, according to the museum.
But I wonder why Thai white spirit or lao khao has never come back to its former glory. Today, Thai lao khao is only a cheap, low-quality drink for certain groups of customers who cannot afford better alcoholic drinks. Thai lao khao is strong and dry, quite good for drinkers who never care about their health, but want to get drunk as soon as possible with a limited budget.
However, in provinces, I find Thai lao khao is not that boring. There are plenty of local brews where the quality is far better than those available in the marketplace. One example is the corn spirit by hill tribe farmers, which is crystal-clear white spirit distilled from fermented local species of sticky rice. There are many more varieties which mirror local expertise.
But most of the quality lao khaos I like are moonshines. Why does moonshine offer better quality than legal lao khao? I am not quite sure about this. Anyway, you may have noticed a number of beverage brands mushrooming recently, ranging from coffee, tea, juices, energy drinks, etc. However, liquor is different.
Besides taxes and duty to pay, production of local liquor is strictly controlled. According to the law, liquor distillers are required to produce at least 30,000 litres of liquor a day, plus many more requirements such as size and location of the factory.
In my opinion, making drinks is a kind of art. It requires a lot of expertise, patience and responsibility to maximise the quality, as well as creativity. It is an art to make people relax. And Thais are not bad at this kind of entertainment. As the number of players in the liquor industry is limited, completion is not tough.
I am rather glad to hear that there are new brewers in Thailand, introducing craft beers to beer lovers. Craft beer is a kind of house brewed beer created by individuals. It can be made from rice, corn or the tropical fruits Thailand is famed for. Numerous brewers invent and create new beers for drinkers to enjoy endless exploration.
However, craft beer is in the same situation as lao khao. According to Thai law, like the liquor, the brewery must be big enough, with production capacity starting from 100,000 litres a year. So, again,that is why most craft beers are illegal.
At this point, I think Thailand's outdated law is limiting people's creativity. You may argue that promoting alcoholic drinks may result in worse social conditions as it may enable people to drink more. But, today, with very few choices, alcoholic consumption is still quite high. Thais drink what is available anyway.
There are a number of countries that produce thousands of wines, hundreds of liquors, but have lower drink-and-drive car accident rates than Thailand today. Indeed, Thailand requires better law enforcement and a lot of awareness about responsible drinking. I do not think Thailand will make any changes to this outdated law soon. I also believe that the art will find its way through. Thai people are very creative concerning such things.
3 Oct. 2016